Pepe (PEPE) memcoin: new challenges and growth prospects

PEPE success story: from a joke to a serious asset

Pepe (PEPE) was launched in April 2023 as a meme token inspired by the popular internet meme "Pepe the Frog". It was initially priced at less than $0.0000001. Still, thanks to overwhelming support from the online community and aggressive marketing, the token rapidly increased in value, reaching an all-time high of $0.00000431 in May 2023, representing an increase of more than 4,300x. Pepe's trading volume exceeded $200 million in the first month after launch, and its market capitalization climbed to $1.2 billion.

This success was made possible by actively promoting the token on social media platforms such as Twitter and Reddit, where thousands of users posted memes and discussed its potential. In addition, celebrities, including some crypto-influencers, have added interest to the project. For example, in May 2023, Elon Musk posted a tweet with an image of a frog and a hint of PEPE, which triggered a 35% spike in the token's price within a day.

PEPE's current market position

Market capitalization and trading volume

As of January 2025, PEPE ranks 24th among all cryptocurrencies in market capitalization, about $7.5 billion. This makes it the third largest memcoin after Dogecoin and Shiba Inu. The token's average daily trading volume is stable at $1.4 billion, which is a testament to its popularity among active traders.

Geographic distribution

Interest in PEPE has spread globally. According to a study by analytics platform CoinGecko, about 35% of all PEPE holders are in Asia. The popularity is particularly notable in South Korea and Japan, where memes play an essential role in internet culture. Another 25% of holders are in the United States and Canada, and 20% are in the European Union. The remaining 20% is spread across other regions, including Latin America and Africa, where cryptocurrencies are becoming increasingly popular.

Partnerships and integrations

In 2024, PEPE became one of the first memcoins to be integrated into popular decentralized finance (DeFi) protocols such as Uniswap, Aave, and PancakeSwap. This allowed token holders to participate in activities such as steaking and farming, providing returns of up to 15% per annum.

Additionally, in 2025, the token will be used as a means of payment on 50+ platforms, including major NFT marketplaces such as OpenSea and Rarible. For example, in November 2024, over 100,000 transactions used PEPE to purchase NFTs.

Factors influencing the popularity of PEPE

• Strength of the community. One of the main drivers of PEPE's popularity remains its active community. According to Reddit, the number of subscribers on PEPE's most significant community has grown from 500,000 in 2023 to 1.2 million in 2025. Hundreds of new memes and discussions are posted daily, keeping the project interesting. For example, in December 2024, one of the viral videos related to PEPE gained over 10 million views on TikTok in a week.
• Role of influencers. Endorsements from famous personalities play a significant role in the token's popularity. In 2024, Elon Musk mentioned PEPE again in one of his tweets, leading to a 25% price increase in just 24 hours. Other influencers, such as crypto bloggers BitBoy and Altcoin Daily, regularly cover PEPE in their reviews, which attracts new audiences.
• Integration with Web3 technologies. PEPE is actively used in Web3 applications. For example, in 2024, the token became part of the MetaPlay gaming ecosystem, which can be used to purchase in-game items. Players also actively use PEPE to participate in tournaments with prize pools reaching $500,000. In games like BattleFrogs and CryptoQuests, PEPE is the primary medium of exchange, allowing gamers to interact easily within the ecosystem. In January 2025, game-related transactions accounted for about 10% of total PEPE transactions, equivalent to about $120 million monthly. This demonstrates the token's growing popularity among gamers, especially in Asian countries where cybersports and the in-game economy are at their peak.
• Cultural relevance. Pepe the Frog remains one of the most recognizable memes in internet culture. It attracts a young audience that is actively using cryptocurrencies. According to a survey by Statista, 60% of PEPE holders are between 18 and 34. On social networks such as TikTok and Instagram, the hashtag #PepeCoin has racked up more than 500 million views over 2024, confirming the token's popularity among the digital generation. Moreover, a study by analytics company Messari found that 70% of young PEPE holders are active crypto community members and regularly use the token for transactions in gaming apps or NFT purchases. This emphasizes that the token has become not only a symbol of meme culture but also part of the digital economy of the younger generation.

Risks and challenges

Despite its success, PEPE faces several serious challenges.

Increased regulation of cryptocurrencies in countries such as the US and China could affect the availability of memcoins. For example, in July 2024, the US Securities and Exchange Commission (SEC) initiated an investigation into several memcoins, including PEPE, which temporarily suspended its listing on Binance US and Coinbase exchanges. As a result, PEPE's trading volume dropped 40% within a week, falling from $1.5 billion to $900 million.

In December 2024, China regulators increased controls over cryptocurrency transactions, which led to the shutdown of access to PEPE on several localized exchanges such as Huobi. Messari's analyst report noted that such actions reduced PEPE's global liquidity by 15% in Q4 2024. Despite this, the token quickly regained ground thanks to the support of decentralized platforms such as Uniswap and PancakeSwap, where regulation is less strict.

Competition in the memcoin environment is also a significant challenge for PEPE. New projects such as WOOF and FLOKI offer innovative mechanics that appeal to users.

For example, FLOKI is developing educational platforms within its ecosystem, while WOOF is actively introducing gamification elements into using the token. In 2024, FLOKI increased its market capitalization to $3.8 billion and WOOF to $2.1 billion. These projects pressure PEPE to adapt and find new ways to engage audiences.

If PEPE fails to offer new features or products, its popularity may decline in the long term. For example, according to a study by analytics company Messari, 75% of memcoin users lose interest in projects that do not update functionality or offer unique features. In 2024, a similar situation was observed with the MOON token, which lost 60% of its market capitalization in six months due to a lack of new releases. If PEPE fails to adapt, its trading volume could drop by 20-30% within a year, making it much harder to retain its current audience and attract new users.